Senator Ted Cruz of Texas is preparing to challenge a newly finalized IRS cryptocurrency regulation using the Congressional Review Act
The rule requires decentralized cryptocurrency exchanges to collect customer information, including names and addresses, and issue tax forms to users. This has sparked backlash from the crypto industry, according to an Axios report.
Cruz’s move, supported by Sens. Cynthia Lummis, Bill Hagerty, and Tim Sheehy, is part of a broader effort to repeal what Republicans call the “midnight rules” of the Biden administration.
These regulations were finalized late last year, and the CRA gives Congress until mid-May to overturn them. CRA resolutions bypass Senate filibusters, requiring only majority votes in both chambers to pass, according to Axios.
Government overreach
The IRS rule has drawn criticism from crypto advocates, who argue it constitutes government overreach and threatens privacy in the decentralized finance ecosystem.
The crypto industry, which has filed lawsuits against the IRS and Treasury Department over the regulation, sees the CRA as a potential lifeline.
The lawsuits allege that the reporting requirements are unconstitutional and stifle innovation. Cruz, who chairs the Commerce Committee, has expressed confidence in the resolutions’ passage, stating that they will be considered “expeditiously,” according to Axios.
